Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") (Tables)

12 Months Ended

Dec. 31, 2021

Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)


	Year Ended December 31,
	2021						2020						2019
(Thousands of dollars)	Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount		Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount		Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount
Defined benefit pension plans:
Net actuarial gain/(loss)	$	59,176	$	(14,202)	$	44,974	$	(57,539)	$	13,809	$	(43,730)	$	(71,087)	$	17,061	$	(54,026)
Amortization of prior service cost	959		(230)		729		1,155		(277)		878		1,271		(305)		966
Amortization of net actuarial (gain)/loss	44,597		(10,703)		33,894		37,830		(9,079)		28,751		23,376		(5,610)		17,766
Prior service cost	—		—		—		—		—		—		(1,878)		452		(1,426)
Regulatory adjustment	(88,194)		21,167		(67,027)		7,435		(1,785)		5,650		36,944		(8,867)		28,077
Pension plans other comprehensive income (loss)	16,538		(3,968)		12,570		(11,119)		2,668		(8,451)		(11,374)		2,731		(8,643)
FSIRS (designated hedging activities):
Amounts reclassified into net income	2,174		(522)		1,652		3,247		(780)		2,467		3,344		(803)		2,541
FSIRS other comprehensive income (loss)	2,174		(522)		1,652		3,247		(780)		2,467		3,344		(803)		2,541
Total other comprehensive income (loss) –Southwest Gas Corporation	18,712		(4,490)		14,222		(7,872)		1,888		(5,984)		(8,030)		1,928		(6,102)
Foreign currency translation adjustments:
Translation adjustments	20		—		20		1,713		—		1,713		2,038		—		2,038
Foreign currency other comprehensive income (loss)	20		—		20		1,713		—		1,713		2,038		—		2,038
Total other comprehensive income (loss) – Southwest Gas Holdings, Inc.	$	18,732	$	(4,490)	$	14,242	$	(6,159)	$	1,888	$	(4,271)	$	(5,992)	$	1,928	$	(4,064)

(1) Tax amounts are calculated using a 24% rate. With regard to foreign currency translation adjustments, the Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments in Other comprehensive income (loss).

Schedule of Rollforward of Accumulated Other Comprehensive Income

The following table represents a rollforward of AOCI, presented on the Company’s Consolidated Balance Sheets and its Consolidated Statements of Equity:


	Defined Benefit Plans						FSIRS						Foreign Currency Items
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (4)		After-Tax		Before- Tax		Tax (Expense) Benefit (4)		After-Tax		Before- Tax		Tax (Expense) Benefit		After-Tax		AOCI
Beginning Balance AOCI December 31, 2020	$	(77,720)	$	18,653	$	(59,067)	$	(2,719)	$	651	$	(2,068)	$	132	$	—	$	132	$	(61,003)
Net actuarial gain/(loss)	59,176		(14,202)		44,974		—		—		—		—		—		—		44,974
Translation adjustments	—		—		—		—		—		—		20		—		20		20
Other comprehensive income before reclassifications	59,176		(14,202)		44,974		—		—		—		20		—		20		44,994
FSIRS amount reclassified from AOCI (1)	—		—		—		2,174		(522)		1,652		—		—		—		1,652
Amortization of prior service cost (2)	959		(230)		729		—		—		—		—		—		—		729
Amortization of net actuarial loss (2)	44,597		(10,703)		33,894		—		—		—		—		—		—		33,894

Regulatory adjustment (3)	(88,194)		21,167		(67,027)		—		—		—				—		—		(67,027)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.	16,538		(3,968)		12,570		2,174		(522)		1,652		20		—		20		14,242
Ending Balance AOCI December 31, 2021	$	(61,182)	$	14,685	$	(46,497)	$	(545)	$	129	$	(416)	$	152	$	—	$	152	$	(46,761)

(1)The FSIRS reclassification amount is included in Net interest deductions on the Company’s Consolidated Statements of Income.

(2)These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details).

(3)The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Consolidated Balance Sheets).

(4) Tax amounts are calculated using a 24% rate.

The following table represents a rollforward of AOCI, presented on Southwest’s Consolidated Balance Sheets:


	Defined Benefit Plans						FSIRS
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (9)		After- Tax		Before- Tax		Tax (Expense) Benefit (9)		After- Tax		AOCI
Beginning Balance AOCI December 31, 2020	$	(77,720)	$	18,653	$	(59,067)	$	(2,719)	$	651	$	(2,068)	$	(61,135)
Net actuarial gain/(loss)	59,176		(14,202)		44,974		—		—		—		44,974
Other comprehensive loss before reclassifications	59,176		(14,202)		44,974		—		—		—		44,974
FSIRS amount reclassified from AOCI (6)	—		—		—		2,174		(522)		1,652		1,652
Amortization of prior service cost (7)	959		(230)		729		—		—		—		729
Amortization of net actuarial loss (7)	44,597		(10,703)		33,894		—		—		—		33,894

Regulatory adjustment (8)	(88,194)		21,167		(67,027)		—		—		—		(67,027)
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation	16,538		(3,968)		12,570		2,174		(522)		1,652		14,222
Ending Balance AOCI December 31, 2021	$	(61,182)	$	14,685	$	(46,497)	$	(545)	$	129	$	(416)	$	(46,913)

(6) The FSIRS reclassification amount is included in Net interest deductions on Southwest’s Consolidated Statements of Income.

(7) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details).

(8) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included Deferred charges and other assets on Southwest’s Consolidated Balance Sheets).

(9) Tax amounts are calculated using a 24% rate.

Schedule of Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income

The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost:


	Year Ended December 31,
(Thousands of dollars)	2021		2020
Net actuarial loss	$	(399,010)	$	(502,783)
Prior service cost	(1,528)		(2,487)
Less: amount recognized in regulatory assets	339,356		427,550
Recognized in AOCI	$	(61,182)	$	(77,720)

Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income


	Year Ended December 31,
	2021								2020								2019
(Thousands of dollars)	Total		Qualified Retirement Plan		SERP		PBOP		Total		Qualified Retirement Plan		SERP		PBOP		Total		Qualified Retirement Plan		SERP		PBOP
Net actuarial loss (gain) (a)	$	(59,176)	$	(54,892)	$	(3,245)	$	(1,039)	$	57,539	$	45,665	$	7,240	$	4,634	$	71,087	$	66,557	$	7,975	$	(3,445)
Amortization of prior service cost (b)	(959)		—		—		(959)		(1,155)		—		—		(1,155)		(1,271)		—		—		(1,271)
Amortization of net actuarial loss (b)	(44,597)		(41,955)		(2,642)		—		(37,830)		(36,025)		(1,805)		—		(23,376)		(22,356)		(1,020)		—
Prior service cost	—		—		—		—		—		—		—		—		1,878		—		—		1,878
Regulatory adjustment	88,194		86,196		—		1,998		(7,435)		(3,956)		—		(3,479)		(36,944)		(39,782)		—		2,838
Recognized in other comprehensive (income) loss	(16,538)		(10,651)		(5,887)		—		11,119		5,684		5,435		—		11,374		4,419		6,955		—
Net periodic benefit costs recognized in net income	57,397		51,194		4,599		1,604		56,291		50,583		3,798		1,910		42,465		36,982		3,046		2,437
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss	$	40,859	$	40,543	$	(1,288)	$	1,604	$	67,410	$	56,267	$	9,233	$	1,910	$	53,839	$	41,401	$	10,001	$	2,437